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To: Jabba the Nutt

The author is not ignorant. Your description of the origin of money is interesting, but not accurate as far as how things work today. Today money (dollars) are created by banks when making loans. Money is created as debt. If you don’t understand that basic fact about our system you have no cause to be calling other people ignorant. It is you who needs more education.


20 posted on 11/26/2010 6:36:10 AM PST by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: Jack Black
I understand how our monetary system works perfectly. It's built on legalized fraud. You apparently don't have a problem with that.

Here's my suggestion, read some honest economics and learn. Start with Henry Hazlitt's "Economics in One Lesson". When you're up to it, tackle Ludwig von Mises "Theory of Money and Credit", throw in Hayek, Rothbard and others. It's called the "Austrian School" of Economics, because many of the leading lights were from Austria and spoke their native Austrian language (according to Barack Obama).

It's this fractional reserve bank that causes inflation. The injection of "new money" into the economy, distorts the economy and leads to wrong economic decisions, because the measuring stick (the currency) is being diluted and distorted. Eventually, the malinvestments pile up and cause a crash. Before growth can resume, the malinvestments have to be washed out of the system, which is the opposite of what all the bailouts are doing.

It is you sir, who are uninformed, ie ignorant. The good news is that can be fixed with knowledge. Get thee some true knowledge.

24 posted on 11/26/2010 9:13:29 AM PST by Jabba the Nutt (Are they insane, stupid or just evil?)
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